Shareholders of JPMorgan Chase & Co and Citigroup Inc will get to vote on whether their banks should consider breaking into smaller pieces.
Citigroup included the question in a proxy statement it filed on Wednesday for its annual meeting next month, and the shareholder sponsoring that proposal said he has a similar one slated for the upcoming ballot for JPMorgan's annual meeting.
The shareholder, Bart Naylor, said he hopes the proposals get more votes than the 4% he got for a measure last year that called for Bank of America Corp to break up.
The Citigroup and JPMorgan proposals "are more deferential to the boards in asking them to study the vicissitudes of a breakup," Naylor said in an interview. He hopes proxy advisory firms, which often sway one-third of votes with their recommendations to institutional investors, will back studies by directors even if they won't tell directors to break up the banks.
"These banks are too big to manage," Naylor said.
Citigroup directors opposed Naylor's resolution in Wednesday's filing, noting that the company has undertaken a transformation on its own to become smaller and more efficient. Citigroup has shed more than US$684.5 billion of assets since 2008.
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Citigroup included the question in a proxy statement it filed on Wednesday for its annual meeting next month, and the shareholder sponsoring that proposal said he has a similar one slated for the upcoming ballot for JPMorgan's annual meeting.
The shareholder, Bart Naylor, said he hopes the proposals get more votes than the 4% he got for a measure last year that called for Bank of America Corp to break up.
The Citigroup and JPMorgan proposals "are more deferential to the boards in asking them to study the vicissitudes of a breakup," Naylor said in an interview. He hopes proxy advisory firms, which often sway one-third of votes with their recommendations to institutional investors, will back studies by directors even if they won't tell directors to break up the banks.
"These banks are too big to manage," Naylor said.
Citigroup directors opposed Naylor's resolution in Wednesday's filing, noting that the company has undertaken a transformation on its own to become smaller and more efficient. Citigroup has shed more than US$684.5 billion of assets since 2008.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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